Phusadee Arunmas
Bangkok Post
Thai rice exporters are already looking for alternative supplies from Vietnam and Cambodia in case the new government makes the price too dear for export, which could halve volume to only 5 million tonnes next year for a revenue loss of 60-70 billion baht.
The Thai Rice Exporters Association (TREA) has been crying foul for a while now regarding Pheu Thai's announced policy to allow farmers to mortgage their entire harvest at 15,000 baht a tonne for white rice and 20,000 baht for fragrant or Hom Mali rice.
Even though the party has said purchases would not start until November, rice prices have been rising each week since before the July 3 general election (see table).
Thai rice prices, the benchmark for Asia, rose by 0.7% yesterday from a week earlier on optimism the new government will buy the grain at above-market rates, said the TREA after its weekly price-setting meeting.
It said the price of 100% grade-B white rice reached $567 a tonne, while 25% broken rice rose to $506 a tonne from $502 last week.
Vice-president Charoen Laothamatas said that if the mortgage programme returns, the free-on-board price of Hom Mali would reach US$1,400 a tonne, making it difficult to market.
"If Thai exporters cannot buy such expensive rice for export, they may opt for much cheaper rice from Vietnam, Cambodia or Burma, as they must maintain their market bases and customers. With the Asean free-trade agreement, such an alternative would be possible," he said.
Some rice exporters and millers have already established trading firms or representative offices in Cambodia and Vietnam to purchase rice for export to foreign customers.
"We have to accept that Vietnam's rice quality has improved a lot. Fragrant rice in Vietnam is $400 to $500 a tonne cheaper than Thai Hom Mali rice and $150 to $200 lower than Thai Pathum Thani rice," said Mr Charoen.
He said competition from Vietnam had resulted in Thai Hom Mali's share of traditional markets such as Hong Kong dropping to only 50% from 85% normally.
Thailand is also at disadvantage in terms of logistics, as the cost for shipping a 20-foot container to the US is $1,700 to $1,800 from Thailand but only $1,350 from Vietnam. Rice exports to China would be $220 more than the $100 cost of shipments from Vietnam.
Chookiat Ophaswongse, the TREA honorary president, predicts exports could be cut in half if the government has no measures to assist exporters.
That means export revenue losses of 60-70 billion baht based on this year's expected 10 million tonnes.
"The government must have measures to support exporters such as offering the government's stockpile at special price or open bidding for the stocks rather than asking only some exporters to offer prices," he said.
TREA president Korbsook Iamsuri said that while exports should be able to meet this year's target of 10 million tonnes, three areas of concern remain.
They are the government's rice mortgage policy jacking up prices; the baht appreciating further, also making Thai rice more expensive; and India's plan to export at least one million tonnes of rice from next month, as its price beats Thailand's by $100 a tonne.
As well, India's stockpile, normally about 20 million tonnes, is now unusually high at 60 million tonnes.
Thailand exported 6.3 million tonnes of rice in the first half of this year, up by 58.3% year-on-year.
2 comments:
Koh Tral Island must not be forgotten
By Ms. Rattana Keo
Why do Koh Tral Island, known in Vietnam as Phu Quoc, a sea and land area covering proximately over 30,000 km2 [Note: the actual land size of Koh Tral itself is 574 square kilometres (222 sq miles)] have been lost to Vietnam by whose treaty? Why don’t Cambodia government be transparent and explain to Cambodia army at front line and the whole nation about this? Why don't they include this into education system? Why?
Cambodian armies are fighting at front line for 4.6 km2 on the Thai border and what's about over 30,000km2 of Cambodia to Vietnam. Nobody dare to talk about it! Why? Cambodian armies you are decide the fate of your nation, Cambodian army as well as Cambodian people must rethink about this again and again. Is it fair?
Koh Tral Island, the sea and land area of over 30,000 square kilometres have been lost to Vietnam by the 1979 to 1985 treaties. The Cambodian army at front line as well as all Cambodian people must rethink again about these issues. Are Cambodian army fighting to protect the Cambodia Nation or protecting a very small group that own big lands, big properties or only protecting a small group but disguising as protecting the Khmer nation?
The Cambodian army at front lines suffer under rain, wind, bullets, bombs, lack of foods, lack of nutrition and their families have no health care assistance, no securities after they died but a very small group eat well, sleep well, sleep in first class hotel with air conditioning system with message from young girls, have first class medical care from oversea medical treatments, they are billionaires, millionaires who sell out the country to be rich and make the Cambodian people suffer everyday.
Who signed the treaty 1979-1985 that resulted in the loss over 30,000 km2 of Cambodia??? Why they are not being transparent and brave enough to inform all Cambodians and Cambodian army at front line about these issues? Why don't they include Koh Tral (Koh Tral size is bigger than the whole Phom Phen and bigger than Singapore [Note: Singapore's present land size is 704 km2 (271.8 sq mi)]) with heap of great natural resources, in the Cambodian education system?
Look at Hun Sen's families, relatives and friends- they are billionaires, millionaires. Where did they get the money from when we all just got out of war with empty hands [in 1979]? Hun Sen always say in his speeches that Cambodia had just risen up from the ashes of war, just got up from Year Zero with empty hands and how come they are billionaires, millionaires but 90% of innocent Cambodian people are so poor and struggling with their livelihood every day?
Smart Khmer girl, President Ms. Rattana Keo,
sounds like siem thugs want to keep the rice monopoly for themselves! i say keep competing cambodia, it's all business. siem business monopoly will soon be history! god bless cambodia.
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